TPG Rise founder leaves firm in wake of U.S. college admissions scandal

NEW YORK (Reuters) – TPG Capital said on Thursday it had fired senior executive Bill McGlashan after he was charged in connection with a U.S. college fraud scheme that has ensnared Hollywood celebrities and corporate elite.

A plaque is pictured at University of Southern California in Los Angeles, California, U.S., March 13, 2019. REUTERS/Mario Anzuoni

“We believe the behavior described to be inexcusable and antithetical to the values of our entire organization,” TPG said in a statement.

In a separate statement via a spokesman, McGlashan said he was resigning from the TPG Rise Fund and TPG Growth. McGlashan was managing co-founder and chief executive of TPG’s impact investing Rise Fund.

“I will be focused on addressing the allegations that have been presented, and there are aspects of the story that have yet to emerge that I wish I could share,” he said.

McGlashan, who was placed on indefinite administrative leave on Wednesday, was among those named in an investigation by U.S. authorities into a scheme that helped wealthy Americans cheat their children’s way into elite universities.

TPG Capital has offered investors in its Rise Fund II the chance to withdraw, a person familiar with the matter said on Thursday.

TPG raised $2 billion for the first Rise fund in 2017, which was backed by pop star Bono and aims to generate profits while benefiting society and the environment.

TPG is aiming to raise up to $3.5 billion for its second Rise Fund, according to documents from the State Investment Council of New Jersey, which has committed up to $125 million in the fund.

The Rise Fund is a small part of the $103 billion in assets that TPG has under management, but a high-profile area of investment among a growing trend for more impact investing.

Impact investing aims to generate some benefit to society while also delivering financial returns.

TPG made the offer to investors who participated in the first close of the fund. A spokesman for TPG’s Rise Fund declined to comment. The news was reported earlier by Bloomberg.

TPG has said Jim Coulter will take over managing partner responsibilities for TPG Growth and Rise.

Reporting by Joshua Franklin in New York, editing by Rosalba O’Brien and Lisa Shumaker